Succession Planning is Critical This Year
Succession planning is especially critical this year because the nation’s estate tax laws are scheduled to change in 2013. Currently, each individual has a $5 million federal tax exemption. Anything above the $5 million would be assessed at a tax rate of 35%. Beginning next year, the federal tax exemption amount will change for $5 million to $1 million and the assessed tax rate would rise from 35% to 55%. It is important to plan way ahead and consider the long term effects of the choices made on the business and the family.